Professional Documents
Culture Documents
Candidate Challenge:
Change it up. Staying in your current
role longer isn’t the key to readiness.
Nor is round after round of career
moves that build on what you already
do well. Honestly assess your weak
spots, identify skills you need, and seek
out challenges or roles that fill those
gaps. Note that you need to learn and
lead as you go—the ability to succeed
in unfamiliar territory is an essential
CEO skill.
Candidate Challenge:
Learn to take a direct hit. Until you
are CEO, you have someone else to ab-
sorb some of the shock of a poor strate-
gic decision or an operational problem.
For CEOs, the shock absorber is gone.
No one else can share the blame for
poor performance. To get a sense of
this, make sure you are taking personal
responsibility for key, high-profile ini-
tiatives. Can you own the work without
micromanaging it? Can you take the
hits rather than looking for cover?
Candidate Challenge:
Get introductions. Your internal net-
works may be solid. You have good
relationships with key customers and
suppliers. But how plugged in are you
beyond your immediate business? Do
you have ties throughout your industry?
With regulators? With experts in fields
related to the business? If not, start
building them.
The reasons?
1. poor business performance
2. leadership
3. self-control
4. relationship management
These causes of failure are further exacerbated during periods of change or stress.
Many CEOs seem to have ignored the findings of Finkelstein (2003) in the now-classic book
Why Smart Executives Fail. He cites these
7 deadly sins:
1. overestimating their strength and underestimating
the strength of competitors;
2. putting personal interests ahead of organizational
interests;
3. being arrogant and making reckless decisions;
4. eliminating anyone who might disagree with them;
5. ignoring operations while trying to manage their
company’s image;
6. minimizing difficult obstacles and not planning
accordingly; and
7. relying on outdated strategies and tactics.
Sources
Kaplan, S. N., & Minton, B. A. (2011). How has CEO turnover changed? International Review of Finance, 12: 57–87. doi: 10.1111/j1468-2443.2011.01135.x
Hogan, J., Hogan, R., & Kaiser, R. B. (2011). Management derailment. In S. Zedeck (Ed.), American psychological association handbook of industrial and organizational
psychology, vol. 3: Maintaining, expanding, and contracting the organization (pp. 555–575). Washington, D.C.: American Psychological Association.
Finkelstein, S. M. (2003). Why smart executives fail: and what you can learn from their mistakes. New York, NY: Portfolio.
P&L responsibility. Having responsibility for the profit and loss of a major segment of the
business is usually the single most important criteria.
A global role. Increasingly, some experience in a global role is becoming more common as a
prerequisite to CEO succession—even in organizations that have operated primarily in their do-
mestic markets historically.
Functional flexibility. Experience in different functions is a plus, particularly finance or
sales. While candidates from human resources, R&D, and legal do get tapped, they are much less
likely to do so.
Company and industry tenure also are factors in tions about criteria for selection, which may
the “right experience” equation. Some firms have not have occurred prior. In the course of these
such a strong “promote from within” philosophy conversations, views are influenced and quali-
that outsiders run into formidable obstacles. In fications rise or fall in their importance.
other cases, particularly where a change in direc-
Get outside input. Learn about your competi-
tion is called for, Boards often overlook internal
tors’ CEOs. Look beyond the celebrity CEOs
candidates in favor of a person who they believe
to learn from leaders who are succeeding
will bring a fresh perspective. In some industries
under the radar. Understand your industry
(health care, finance) a deep understanding of the
and future trends that will affect the direc-
business is seen to be essential. In others, Boards
tion of your company—and how you might be
may feel confident that CEO skills are transferable
prepared to lead it.
from one industry to another. The military, too, is
often a source of top talent. If you have time for additional job rotations, work
them into your resume. If the timeframe is tight,
To get a handle on the specific experience re-
take on targeted, meaningful projects that would
quirements for the post you are seeking, you’ll
demonstrate untested skills. For example, ask to
want to gather information from a range of
be put in charge of a situation that no one else
sources.
wants to touch. You’ll gain visibility for leadership
Look to the background and career paths of qualities that may have been unnoticed.
previous CEOs. What remains valued today
Once a candidate pool has been narrowed down,
and what has changed? Keep in mind, what
specific experience becomes less important.
was once considered the right experience may
Candidates who have dutifully checked all the
not be good enough now.
boxes may be stunned when comparatively less
Ask the current CEO and Board members. qualified individuals are given the nod over them.
Find out what qualifications are important CEOs and Boards look for well-rounded individu-
from their point of view. Don’t be surprised, als, not just well-qualified ones. This is where the
however, if there isn’t agreement. The process next three areas of CEO readiness come into play.
of selecting the next CEO forces conversa-
It’s unlikely that you can change your spots entirely—or frankly, would want
to—but with good feedback, observation, and coaching, you can do quite a lot to
change the way you come across to others. For example, if you aren’t perceived
as being bold enough, you’ll need to put an action plan in place that demon-
strates just how bold you can be. If you are seen as not considerate enough of
others, there are things you can do to shift.
What won’t work is to ignore the views and expectations of the world around you.
Crashing ahead as if your strengths alone will make you a success will add you to
the long list of very bright, talented superstars who failed as CEOs.
The best recommendation is to become more versatile. Work on your flexibility,
learn to adapt to the various situations rather than continuing to play every hand
the same way. This allows you greater range—and boosting the likelihood of the
right fit in the CEO role.
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